Taking SS at 69 instead of 70 - Yes, yet another SS question.

[W2R]

For those who have taken SS, doesn't matter when you took it, was the estimate on SSA.GOV close or equal to what you actually received?

Yes, in my case it was IIRC.

 

[Bigbass]

I am 68 will be 69 in January which is the timeframe I am thinking about. I guess it will depend on what the 2023 ACA costs will be. I do have trouble giving my SS to Florida Blue for my Wife's final Year of ACA.

Can you file when you're 70, but request retroactive payments for 6 mos? Will your wife be on medicare by then or at least within one month, correct?

 

[ShokWaveRider]

Can you file when you're 70, but request retroactive payments for 6 mos? Will your wife be on medicare by then or at least within one month, correct?

We are not even a month apart from a Birthday perspective. December for her, the following January for me.

 

[5Miler]

I started SS last November at 68 years and 5 months. My plan all along had been to wait until 70 but keep reevaluating each year after turning 66 which was my FRA. I signed up online and everything moved along uneventfully with no need for contact with SS except for informational notices they would send me. I must have missed how to set up tax withholding when I first signed up but it was easy enough to send a W-4V to my local office and it took effect with my first check.

The dollar amount I receive matches exactly with the online estimate provided. The only regret I have is not waiting until January to start payments as I am still not being paid for my Delayed Retirement Credits accrued from Jan through Oct last year. I have read that it can sometimes take up to two years for that extra credit to be recognized and added to my payment. Good plan on your part to start payments in January so you should avoid that issue.

 

[Global Wizzo]

SS at 69

I went through the same thing for different reasons. Difference was about $100/mo. Like you cross over point was 84 or so.

Taking it in Dec with Apr birthday got me the COLA increase and that worked for me. Taking it mid year, the base increase didn’t to seem to match up with the cola increase. This year should be a good increase for 2023.

No right or wrong answers. Just do what works best for you.

 

[Doc0]

If your wife's SS will be less that 1/2 of your SS at FRA, she can taker her retirement at her rate and you can file for spousal. At 70 you retire and she can continue at whatever rate she got when she retired. At her FRA she can the file for spousal and get half of your FRA rate. If you go first she gets the highest survivor benefits.

At FRA you will make 3000/mo. At 70 about 3900/mo. You are 65 now. At 62 she can retire at 1000/mo according to her agw 62 SS statementand. She is 62 and so she retires and you claim spousal which is 500/mo total. 1500/mo till age 70.

At 70 you retire at 3900/mo and she continues at 1000/mo total 4000/mo till she reaches her FRA.

At her FRA she takes spousal on your account and her 1000/mo is now 1500/mo plus she is on medicare rather than ACA for probably 2 years. Total 4500/mo plus ACA is no longer a factor.

So the ACA subsidy may not be the controlling factor if you maximize SS income over the life of the transition.

 

[mickeyd]

Here is what I am struggling with. At what point will the ACA increase (as our MAGI will increase substantially) make taking SS at 69 viable or non-viable.

You are over-thinking this. If you want to take it @ 69 do so. I waited until 70 for different reasons. Ain't it great?

 

[MissMolly]

If your wife's SS will be less that 1/2 of your SS at FRA, she can taker her retirement at her rate and you can file for spousal. At 70 you retire and she can continue at whatever rate she got when she retired. At her FRA she can the file for spousal and get half of your FRA rate. If you go first she gets the highest survivor benefits.

At FRA you will make 3000/mo. At 70 about 3900/mo. You are 65 now. At 62 she can retire at 1000/mo according to her agw 62 SS statementand. She is 62 and so she retires and you claim spousal which is 500/mo total. 1500/mo till age 70.

At 70 you retire at 3900/mo and she continues at 1000/mo total 4000/mo till she reaches her FRA.

At her FRA she takes spousal on your account and her 1000/mo is now 1500/mo plus she is on medicare rather than ACA for probably 2 years. Total 4500/mo plus ACA is no longer a factor.

So the ACA subsidy may not be the controlling factor if you maximize SS income over the life of the transition.

This is not how it works. If she files early, she will forever be reduced in the amount she receives EXCEPT for survivor which she would receive the full amount he is entitled to as long as she is full retirement age when claiming survivor. Yes, she will get a bump up in her amount once he files, but it won't be for the full 50% because she filed early at 62. Also, he can never, ever file for spousal while preserving his own until he 70. That option went away years ago. When he files (assuming she filed at 62) he will receive the largest benefit he is entitled to, which would be his own because his own will always be greater than 50% of hers.

 

[Rio2016]

If one spouse is on Medicare and the other Spouse is younger, the ACA subsidy does
cut off if your income is too high. Your Spouse will be Single to the ACA.

 

[ShokWaveRider]

OP Here, DW only needs one more year of ACA. So depending on what the new subsidies for 2023 are will determine whether I take at 69 (2023) or 70 (2024).

 

[Bigbass]

he can never, ever file for spousal while preserving his own until he 70. That option went away years ago. When he files (assuming she filed at 62) he will receive the largest benefit he is entitled to, which would be his own because his own will always be greater than 50% of hers.

He might be able to - he mentioned he turns 70 in January 2024, if he was born on January 1st, 1954, he's still able to file for spousal without starting his own benefit.

 

[MissMolly]

Well yes, if he had been born ON 01/01/1954 he can claim spousal if she files for her SS. He would collect that spousal amount for only about a year but she will still be locked into a lower amount permanently (until she can claim survivor) and not receive 50% of his PIA. But the odds of him actually being born on that specific date for purposes of this conversation....

 

[imnontrad]

You need to look not only at your "break even" year but also that of your spouse. Chances are your spouse will outlive you and then be able to transition to your SS amount as a "surviving spouse". So delaying that one year will not only mean less problems with the ACA but ensure your spouse has a higher benefit later on.

 

[Time2]

Well yes, if he had been born ON 01/01/1954 he can claim spousal if she files for her SS. He would collect that spousal amount for only about a year but she will still be locked into a lower amount permanently (until she can claim survivor) and not receive 50% of his PIA. But the odds of him actually being born on that specific date for purposes of this conversation....

0.27397%

 

[Time2]

You need to look not only at your "break even" year but also that of your spouse. Chances are your spouse will outlive you and then be able to transition to your SS amount as a "surviving spouse". So delaying that one year will not only mean less problems with the ACA but ensure your spouse has a higher benefit later on.

Yes, that's what I'm doing, maximizing my spouses survivor benefit and maximizing our Roth Conversions before we collect SS. Only 2yrs, 6mo and 29 days to go, but who's keeping track!


Everything says my wife should start at 62, but if she starts, it is just that much less I can *Roth Convert. when I turn 70 she will be 65.75 years old, any reason to wait 3 more months for FRA before she signs up?


* I have a buddy that laments every quarter about how much he has to take out in RMDs and that at least he gets to keep 76% of his money. The RMDs put him in the 24% tax bracket. I don't want that problem, when I should be able to keep 88% of my money. (yes, I know it's more than that because of brackets)

 

[ShokWaveRider]

OP Here.

My Birthday is late January (1954), I Will be 70 in 2024 If I file at 69 I will get just $200 less than if I do so at 70.

DW Filed at 62 and will be 64 (Mid December 2023) her FRA is 66 and 8 months.

This begs the question that If I File at 69 and get Say $3,200 a month, If DW is currently getting $1000 a month. Can she file for spousal when I file, If so how much would she get? I think Spousal is based on PIA not current.

As DW Filed at 62, her Spousal benefit, according to my calculation would be 66.7% of my PIA. (Whatever that was). Say that was $2,500 DW's Spousal when I file would be $800 ($200 less than the amount she is getting now). Am I correct?

Thanks.

 

[finnski1]

This is not how it works. If she files early, she will forever be reduced in the amount she receives EXCEPT for survivor which she would receive the full amount he is entitled to as long as she is full retirement age when claiming survivor. Yes, she will get a bump up in her amount once he files, but it won't be for the full 50% because she filed early at 62. Also, he can never, ever file for spousal while preserving his own until he 70. That option went away years ago. When he files (assuming she filed at 62) he will receive the largest benefit he is entitled to, which would be his own because his own will always be greater than 50% of hers.

Thank you. This is how I understood it as well.

 

[MissMolly]

OP Here.

My Birthday is late January (1954), I Will be 70 in 2024 If I file at 69 I will get just $200 less than if I do so at 70.

DW Filed at 62 and will be 64 (Mid December 2023) her FRA is 66 and 8 months.

This begs the question that If I File at 69 and get Say $3,200 a month, If DW is currently getting $1000 a month. Can she file for spousal when I file, If so how much would she get? I think Spousal is based on PIA not current.

As DW Filed at 62, her Spousal benefit, according to my calculation would be 66.7% of my PIA. (Whatever that was). Say that was $2,500 DW's Spousal when I file would be $800 ($200 less than the amount she is getting now). Am I correct?

Thanks.

I believe the calculation would be that she receives 62.5% of 50% of your PIA. If she files at 62 and her FRA is 66 and 8 months that means she files 54 months early. As a result, her spousal benefit will be reduced by [54 x 25/36 of 1%] — or 37.50%. 100% - 37.5% = 62.50%. 50% of your PIA amount x 62.50% would be her benefit amount. I think.

 

[mathjak107]

OP Here.

My Birthday is late January (1954), I Will be 70 in 2024 If I file at 69 I will get just $200 less than if I do so at 70.

DW Filed at 62 and will be 64 (Mid December 2023) her FRA is 66 and 8 months.

This begs the question that If I File at 69 and get Say $3,200 a month, If DW is currently getting $1000 a month. Can she file for spousal when I file, If so how much would she get? I think Spousal is based on PIA not current.

As DW Filed at 62, her Spousal benefit, according to my calculation would be 66.7% of my PIA. (Whatever that was). Say that was $2,500 DW's Spousal when I file would be $800 ($200 less than the amount she is getting now). Am I correct?

Thanks.

If she has her own benefit the calculation is simple .

You take half your fra amount regardless of when you filed , tske her fra amount and subtract it ….

The difference is added to what she gets .

If she filed early then the difference is added to her early benefit .

So as an example if the higher earner gets 2800 at fra and the lower earner gets 1200 but filed early and gets their own benefit of 800 then :

You take half the higher earner fra which is 1400 and subtract the fra benefit of the lower earner which is 1200 .

The 200 difference is added to the lower earners early benefit which is 800 ..so they would get 1k …

That is less than the 1400 they would have gotten if they didn’t file early

 

[ShokWaveRider]

IF (Big IF) SS goes up by ~8% as speculated, my 69 SS will be more than my current estimated 70 SS payments.